XRP is one of the most popular cryptocurrencies that has faced strong resistance from the SEC, which demands it be treated as a security. While the complication arising from this lawsuit seems to have eased off as one expects a settlement soon, there has been a subsequent rally coinciding with the broader crypto market.
Ripple is not just a banker’s join but swiftly moving towards smart contracts as it lunges towards this new domain with a new update proposal for its XRPL. Well, you might have guessed XRP is entering into the smart contracts domain with XRPL, but it’s just as simple as it may sound.
The entry of XRPL in smart ledger contracts will pose a threat for Ethereum and other smart contracts supporting cryptos and take a larger bite out of the market share. Growth in Decentralized finance (DeFi) and smart contracts over the last year has thrust XRP’s interest in the domain, which led it to launch the Federated Sidechains within XRPL.
XRP Price Analysis
XRP has made a gain of over 160% since the lows of July 21, 2021, and has raised eyebrows as it gained more than expected, given the unresolved SEC lawsuit. While the highs were not an all-time high, the rally was something to take note of. Interestingly the rise of RSI from oversold zones towards overbought zones within a short span of a month indicates a strong transition happening in this crypto space and XRP.
XRP has managed to take support from the level once on 18th August and posted a gain of 23% in the next three days. But these consolidation zones will be broken down because of profit booking. One must be prepared to take advantage of any sell-off to make some profits and re-enter the XRP space.
The 200 Day Moving Average that indicates a good level to assess the price of any asset is currently 35% below the current level of $1.161, which XRP is trading at after the fall of 9% yesterday on 24th August 2021. One should expect XRP to undergo profit booking with immediate support active around the $1 physiological level.
After sharing a strong breakout at the $1.05 levels, XRP has reached a bottleneck level. At current levels, we have strong support at $0.80 levels with resistance at $1.30 levels. There is a strong probability of a fall back towards $1.00, followed by a bounce-back towards $2.
This price analysis is derived from the decreasing buying sentiment over the last ten days, followed by decreasing volumes. As long as the RSI trades above the 50 levels on a histogram, one should expect XRP to bounce back. The combination of support levels and RSI would make out the perfect position for adding more XRP coins.
On hourly charts, there has barely been any movement in positive or negative ways as XRP consolidates in a narrow range. While RSI indicates an oversold level with histogram levels below 40, MACD shows a bullish divergence, indicating an upside movement soon. As per our Ripple price prediction, if XRP can break the resistance it has been facing at $1.32 levels, it should be considered a consolidation phase with a strong inclination towards profit booking.